Research shows Australians are moving money out of traditional savings accounts and into investments. Here are some key tips for online share trading:
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It's important to stay up-to-date with the broader economy and learn how major events such as national elections impact the share price of various companies.
If you want to invest in a company, research as much as possible about it before making a final decision. It's a good idea to read annual reports and meeting minutes to learn what's in the pipe-line, and what changes will be made that could affect the share price.
This is a good strategy for people new to the share market, as blue-chip companies often have more stable returns, are less volatile and often pay dividends.
Rather than investing all your money in one company, consider spreading it out across a few from different industries. Diversification will help lower risk and ensure you don't have all your eggs in one basket.
Advice provided by online comparison site Finder